Notes to the financial statements

1. Basis of preparation for the financial statements

1.1 Valuation principles

  • Fixed assets are entered in the balance sheet at cost less planned depreciation.
  • 25 per cent reducing balance depreciation is applied to machinery and equipment.
  • Software licenses are amortised on a straight-line basis over five years.
  • Other long-term expenses are amortised on a straight-line basis over five years.

Foreign currency items

Foreign currency denominated assets and liabilities are recognised at the European Central Bank average exchange rate of the closing date of the financial period.

1.2 Comparability of accounts

The accounting principles that were applied in 2012 have also been applied in 2013.

2. Notes to the profit and loss statement

2.1 Personnel expenses and average number of personnel 2013 2012
Salaries -4 542 946,91 -4 114 224,77
Fees and remuneration of the Managing Director and the Board of Directors -292 023,85 -316 691,86
Pension expenses -885 687,39 -768 262,14
Other indirect personnel expenses -228 117,48 -214 829,28
Personnel expenses, total -5 948 775,63 -5 414 008,05
Total monetary value of fringe benefits 74 476,92 80 335,36
Number of employees    
At the end of the financial period 73 71
Average during the financial period 71 69
     
2.2 Depreciation    
Planned depreciation during the financial period    
Intangible assets
   
Software licenses -33 371,43 -29 193,36
Tangible assets
   
Machinery and equipment -18 326,33 -21 394,13
Depreciation during the financial period, total -51 697,76 -50 587,49
     
2.3 Other operating expenses    
Administrative expenses -1 110 467,76 -1 032 573,21
Facility expenses -634 965,19 -616 769,71
Telephone, IT and office expenses -459 886,81 -434 078,78
Marketing expenses -90 916,31 -95 697,17
Travel expenses -63 246,97 -90 815,95
Representation expenses -4 475,23 -1 933,57
Other operating expenses -143 207,67 -186 761,73
Other operating expenses, total
-2 507 165,94 -2 458 630,12
     
2.4 Financial income and expenses    
Financial income    
Interest income 94 935,55 223 948,37
Exchange rate gains 38,75 0,00
Other income from securities 2 920,38 0,00
Financial income, total
97 894,68 223 948,37
     
Financial expenses    
Interest expenses -165,99 -35,82
Exchange rate losses -5,64 -157,19
Guarantee premiums -10 652,04 -15 567,52
Other expenses from investments -189,53 0,00
Financial expenses, total
-11 013,20 -15 760,53
     
2.5 Auditors' fees
   
Audit fees -29 831,62 -26 231,83
Other fees -15 738,00 -11 438,57
Auditors' fees, total -45 569,62 -37 670,40
     
3. Notes to assets of the balance sheet 2013 2012
3.1 Changes in non-current assets    
Intangible assets    
Acquisition cost 1.1. 366 521,38 354 584,93
Procured during financial period 20 888,83 11 936,45
Sold during financial period 0,00 0,00
Acquisition cost 31.12. 387 410,21 366 521,38
Accumulated depreciation 1.1. -307 365,81 -278 172,45
Depreciation during the financial period -33 371,43 -29 193,36
Accumulated depreciation 31.12. -340 737,24 -307 365,81
Balance sheet value 31.12. 46 672,97 59 155,57
Tangible assets    
Acquisition cost 1.1. 723 699,17 719 109,75
Procured during financial period 10 210,01 4 589,42
Sold during financial period 0,00 0,00
Acquisition cost 31.12. 733 909,18 723 699,17
Accumulated depreciation 1.1. -660 399,20 -639 005,07
Depreciation during the financial period -18 326,33 -21 394,13
Accumulated depreciation 31.12. -678 725,53 -660 399,20
Balance sheet value 31.12. 55 183,65 63 299,97
The company does not have a depreciation difference.    
     
3.2 Long-term receivables    
Other receivables    
Guarantee deposits 889 887,79 0,00
Long-term receivables, total 889 887,79 0,00
     
3.3 Other receivables
   
Travel advances 17 309,85 10 047,83
Other receivables, total 17 309,85 10 047,83
     
3.4 Prepayments and accrued income    
Accrued interest, Bank account for December 157,75 62 857,26
Deferred expense 51 954,02 75 604,64
Pension insurance payment receivables 0,00 19 805,48
Prepayments and accrued income, total 52 111,77 158 267,38
     
3.5 Investments Book-value Book-value
Other shares and similar rights of ownership    
Fund units 1 977 245,20 0,00
Investments, total 1 977 245,20 0,00
     
4. Notes to equity and liabilities of the balance sheet 2013 2012
4.1 Equity    
Restricted equity    
Share capital 1.1. 12 500 000,00 12 500 000,00
Share capital 31.12. 12 500 000,00 12 500 000,00
Restricted equity, total 12 500 000,00 12 500 000,00
     
Non-restricted equity    
Retained earnings 1.1. 2 352 945,42 1 750 997,10
Retained earnings 31.12. 2 352 945,42 1 750 997,10
Profit/loss for the financial period 195 414,47 601 948,32
Non-restricted equity, total 2 548 359,89 2 352 945,42
Equity, total 31.12. 15 048 359,89 14 852 945,42
     
4.2 Current liabilities    
Accruals and deferred income    
Annual leave salaries and related social security payments 682 628,73 665 014,85
Salary liabilities and related social security payments 570 355,94 385 000,00
Accrued pension expense 9 972,00 0,00
Mandatory employer insurance payments 5 718,13 1 785,35
Other accrued expense 78 310,26 160 670,72
Accruals and deferred income, total 1 346 985,06 1 212 470,92
     
5. Notes on collateral and contingent liabilities    
5.1 Commitments
   
Other own commitments
   
Rental liabilities, less than one year 661 968,60 705 538,20
Rental liabilities, more than one year 2 852 512,59 0,00
On-demand bank guarantee to Nasdaq OMX Stockholm Ab 53 389 679,00 0,00
Guarantee deposits to Nasdaq OMX Stockholm Ab 889 887,79 0,00
Leasing liabilities, less than one year 67 220,81 97 316,66
Leasing liabilities, more than one year 64 734,02 28 322,84
Commitments, total 57 926 002,81 831 177,70

The structure of the government’s Electricity framework agreement was modified in 2013 in conjunction with the new framework agreement. In the new model, the clearing account for energy derivatives trading is in Nasdaq OMX Stockholm Ab under Hansel’s name. To open this account, Hansel had to make guarantee deposits to Nasdaq (totalling €889,887.79 on 31 December). The deposits are verified every three months by Nasdaq.

Hansel has a maximum on-demand bank guarantee of €150 million from Nordea Bank Finland Plc, for use in hedging electricity purchase prices, of which €65 million was still available on the balance sheet date. On 31 December 2013, Hansel had used €53,389,679.00 of this guarantee, which corresponded to the guarantees given to Nasdaq on the balance sheet date. The collateral provided by Hansel against the bank guarantee from Nordea is a directly enforceable government guarantee of a maximum of €150 million, granted by the government to Hansel for use in electricity price hedging (decision VM/1805/02.04.06/2013).

For Hansel, electricity derivatives trading is a pass-through item that does not affect profits. The results of derivatives trading are charged or repaid to customers as they come. The government’s electricity price hedging policy is set by the Ministry of Finance, based on a proposal by the steering group for government electricity procurement. A portfolio manager chosen by Hansel through competitive tendering decides on the content and timing of individual hedges made in line with the hedging policy. The hedges made according to the policy reach up to 2019.

5.2 Pending legal proceedings

At the end of 2013, Hansel was involved in one tendering-related case handled in the Market Court, and four in the Supreme Administrative Court. During the year the company received 16 decisions ofthe Market Court, in which eight appeals were rejected, six were left without further action and one expired. One trial ended in a procurement decision being revoked. Similarly, the Supreme Administrative Court gave one verdict rejecting an appeal and three verdicts returning the case in question to the Market Court. The Market Court then rejected the returned appeals with regard to the principal claim.